KARACHI: The per tola and 10 gram gold prices hit an all time high of Rs102,000 and Rs87,448 on Monday, up by Rs1,300 and Rs1,114 respectively from Saturday level.

An increase of $12 per ounce in world gold rate to $1,746 was cited by All Sindh Saraf Jewellers Association (ASSJA) as one of the main reasons of rising domestic prices while the worsening rupee-dollar parity was another factor.

According to BIPL Securities, gold jumped to its highest in more than a month as investors sought the safe-haven metal after surging coronavirus cases intensified concerns over a delay in global economic recovery. Spot gold was up 0.7pc to $1,754.74 per ounce after reaching its peak since May 18.

US gold futures rose 1.1pc to $1,771.40. The market is concerned about the outlook for growth and that of course is supportive for gold. The World Health Organization reported a record increase in global coronavirus cases on Sunday, with the total tally rising by 183,020 in a 24-hour period, BIPL said.

In the third week of April, one tola and 10 gram gold price had soared to new local peak of Rs101,000 and Rs86,591 on back of $14 per ounce rise in international bullion rate to $1,738 per ounce.

All Pakistan Jewellers Manufacturers Chairman Mohammad Arshad said that gold trade had been highly depressed since lockdown started from the second week of March and then easing a few days ahead of Eid.

He said a number of gold markets in the vicinity of Saddar and Tariq Road had been shut under “smart lockdown” for the last five days, while others including Sarafa Bazar are open.

Closure of wedding ceremonies at Banquets and halls from March had given a big dent to gold jewellery sales.

When asked about the resumption in weddings in the last month with limited number of guests, he said “the volume of these ceremonies had been hardly five per cent and it cannot be compared with the number being held in halls and banquets before lockdown.”

According to figures of the Pakistan Bureau of Statistics (PBS), gold imports in May remained “nil” as compared to 3kg worth $170,000 in April. Meanwhile, import of yellow metal in 11MFY20 stood at 275kgs, valuing $11.6 million versus 299kgs costing $11.8m in the same period last fiscal year.

Similarly, exports of jewellery in May were also zero as compared to $4,000 in April. Total jewellery sales to foreign markets in July-May FY20 stood at $3.2m, down 32pc over $4.7m.

Arshad said jewellery exports had been affected owing to suspension in international flights. However, the government had resumed flight operation two days back.

Meanwhile, All Sindh Saraf Jewellers Association (ASSJA) President Haji Haroon Rashid Chand claimed that rates of one tola gold has been the lowest in Pakistan by Rs5,000-8,000 compared with rates in Dubai, India, Afghanistan, Bangladesh and Saud Arabia.

He said world gold price is rising while the dollar is falling in the USA and in Pakistan, it is gaining its strength against the rupee, making imported items costlier.

Published in Dawn, June 23rd, 2020